Italy and Poland form alliance to revise EU environmental regulations.

Italy has strengthened its axis with Poland to revise European Union environmental rules, following a similar agreement with the Czech Republic. The Minister of Enterprises and Made in Italy, Adolfo Urso, and the Polish Minister of Finance and Economy, Andrzej Domański, signed a joint declaration in Warsaw.

At the heart of the agreement is the request to modify the European Emissions Trading System (ETS) and to review the CO2 emission reduction targets for cars, starting from the framework planned for 2035. Italy and Poland deem the European Commission's proposal insufficient and ask that the targets be proportionate to the technological and economic capabilities of businesses.

The two countries want to maintain free emission allowances without introducing new conditions and suspend their elimination until the effectiveness of CBAM, the mechanism that applies a cost related to emissions on imports from non-EU countries, is demonstrated. They also request the recognition of a new category of vehicles powered by climate-neutral fuels.

The debate over European climate policies has become increasingly heated in recent years, with some governments fearing the consequences for industrial production. The European Union has set ambitious targets to reduce greenhouse gas emissions, but the measures to achieve them—such as the ETS—are contested by countries concerned about their companies' competitiveness.

The ETS (Emission Trading System) is a system that puts a price on carbon dioxide emissions from power plants and energy-intensive industries. Introduced in 2005, it is supposed to incentivize emission reductions, but it is seen as an additional cost for European companies compared to international competitors. This is why some countries are calling for maintaining free allowances.

Italy's battle fits into this framework: Rome promotes "technological neutrality," arguing that climate goals should not only favor electrification but should allow for different technological solutions. This position could have consequences for automotive industry investments and the entire component supply chain, reshaping the European ecological transition.